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This paper was developed as part of an effort by the National Institute for Occupational Safety and Health (NIOSH) to identify risk factors associated with bumps in the prevention of fatalities and accidents in highly stressed, bump-prone ground conditions. Changes of failure mechanism with increasing confinement, from extensional- to shear-dominated failure, are widely observed in the rupture of intact specimens at the laboratory scale and in rock masses. In the previous analysis conducted in 2018, both unconfined and triaxial compressive tests were conducted to investigate the strength characteristics of some specimens of a Utah coal, including the spalling limits, the ratio of apparent unconfined compressive strength (AUCS) to unconfined compressive strength (UCS), the damage characteristics, and the post-yield dilatancy. These mechanical characteristics were found to be strongly anisotropic as a function of the orientation of the cleats relative to the loading direction.

Jan 7, 2020

By L. K. Bandyopadhyay, P. K. Mishra, S. K. Chaulya, R. S. Singh, A. Kumar, N. Tripathi, K. Mandal

A comprehensive field study has been carried out to measure the background air quality status and identify the air pollution sources from opencast mines around a heritage site in India. Air quality modeling has been carried out to envisage dust concentration due to the existing and closed mines in the region. The predicted total PM10 and PM2.5 levels at the selected receptor locations ranged from 86.39 to 194.89 and from 34.82 to 99.55 µg/m³, respectively.

Jan 12, 2022

By Anup Tiwari, Khanindra Pathak, BIBHUTI BHUSAN MANDAL

Failure of in-pit overburden dumps in open-pit coal mines causes debris to flow toward the active working face, threatening the safety of people and equipment. The evaluation of the potential mobility of failing mass will aid in hazard mitigation associated with unwarranted dump failure. The potential mobility is shown by mobility ratio (ratio of total drop between debris flow's initial and final deposition points to total travel distance) and runout characteristics. In light of above, a laboratoryscale debris flow flume was developed to investigate the effect of material gradation and slope angle on runout characteristics and mobility ratio. The total mass of experimental debris mix (Q) is fixed at 30 kg with 20% water content. Experiments at three different slope angles (30°, 35°, and 40°) demonstrate that increasing the proportion of fines in the experimental mix increases runout characteristics while decreasing the mobility ratio. The length and area of the runout decrease as the slope angle increases, while the mobility ratio increases. There is a positive correlation between d50 and runout characteristics at a fines content of 0.1Q, but a negative correlation at a fines content of 0.2Q and 0.3Q. Conversely, there is a negative correlation between d50 and mobility ratio for fines content of 0.1Q, but a positive correlation exists for fines content of 0.2Q and 0.3Q. A new index called the fine-to-coarse (F/C) ratio is used to identify the critical value of fines and coarse proportion that causes a transition from dry granular flow to fluidized debris flow.

May 29, 2023

By Peter Dowden, Trevor Carter, Allan Moss, Bruce Downing, Richard Beddoes

Traditionally (with a few exceptions) tunnel boring machines (TBMs) have been utilized on tunnel projects where the risks associated with deep tunnels (rock burst, squeeze, etc) are low (or expected to be low). This has generally been due to the extremely adverse consequences of entrapping or damaging a TBM under such conditions; but also due to the relative difficulty of dealing with these ground conditions in the confined working area of a TBM, in comparison to a drill and blast heading. This paper review the constraints of operating a TBM in a deep tunnel and discusses related project experience, particularly recent and current experience with TBMs in the deep Alpine Base Tunnels. Potential future applications of TBMs in the development of large, deep underground mines are also discussed.

Jan 1, 2007

By H. Kinilakodi

In 2008, the authors developed a methodology for assessing underground coal mines for high risk for major-hazard events. It focused on major hazard-related violations of safety standards associated with high-risk conditions. Later using a sample of 103 mines with 2008 and 2009 data, injury measures and MSHA citation data were combined into a Safe Performance Index (SPI). The SPI was used to assess the relative safety-related risk of mines, including by mine-size category. In this paper, comparisons are made of SPI-associated, normalized safety performance measures across mine-size categories, with emphasis on small-mine safety performances as compared to large and medium-sized mines.

Jan 1, 2011

By Ray E. Harris

Introduction A resource of more than 122 Gt (134 billion st) of minable trona and mixed trona and halite underlies an area of about 3400 km2 (1300 sq miles) west of Green River, WY (Culbertson, in preparation) (Fig. 1). In 1982, the total domestic consumption of soda ash (refined trona) was 6 Mt (6.7 million st) (Kostick, 1983). About 90% of this came from Wyoming trona. This enormous deposit occurs in the Wilkins Peak Member of the Green River Formation that is of Eocene age. This formation is derived from sediments deposited in a large lake named Gosiute. Lake Gosiute occupied the Green River Basin in southwestern Wyoming some 38 to 54 million years ago. The Wilkins Peak Member represents a restricted, evaporite-rich cycle of deposition when the trona deposits were formed. A total of 42 trona beds are known. Of these, 25 are of sufficient thickness and extent to be considered minable (Culbertson, in preparation). The production of sodium compounds from the trona deposits in the Wilkins Peak Member began in 1896 when wells were drilled within the present boundaries of the town of Green River. The purpose of the drilling was for extraction of sodium carbonate brines. Sodium carbonate (sal soda) was removed from these brines at a plant in Green River. Bedded trona was discovered in 1938 in a core from an oil well drilled south of Westvaco. In 1947, the underground mining of trona began. Production has continued from 1948 to date. Currently, five companies are mining trona and producing soda ash from the Wilkins Peak Member in Wyoming. Additionally, Allied Chemical Co. mines and processes trona for Church and Dwight's sodium bicarbonate (baking soda) operation in Green River. Competition in the soda ash industry depends primarily on the efficiency of mining and refining, allowing for lower-cost production. Newer plants and mine designs should increase efficiency. Solution mining holds promise as an even lower-cost method of mining. Employment in the soda ash industry is declining since the newer mining and refining methods are less labor intensive. Declines in employment, however, may be offset as production increases. Due to the large resource, the availability of minable trona should not be a problem for perhaps hundreds of years. Geology of Wyoming trona deposits Forty-two beds of trona or mixed trona and halite occur in the

Jan 10, 1985

By J. Drew

Oregon Resources Corporation (ORC), an industrial minerals mining company, is currently engaged in the development of a new process design that will allow the unique paleo-beach placer deposits of southwestern Oregon to be mined efficiently and economically, creating an additional domestic source for chromite, garnet, and zircon. Engineering design has been guided by the variable geology and mineralogy of the paleo-beach placer deposits as well as the need for a dry tailing scheme that resolves a lack of water resources at the placer locations and at the same time eliminates the need for slurry settling ponds, typical of paleo-beach placer operations in North America. Metallurgical study of the placer material was grouped into four distinct samples based on marine terrace deposition, geological facies, and mineralogy. Because the metallurgical samples represented the extremes likely to be encountered in all future Oregon paleo-beach placer ores, the process design is highly dynamic and will successfully adjust to meet the production needs. Water availability at the mining area is seasonal and will not support a typical placer operation?s water requirement needs for heavy mineral concentration. For this reason, ORC has developed a plan to construct the ore processing facilities near Coos Bay, where a municipal source of water is available. Raw ore will be transported from the mining sites approximately twenty miles one way to the processing facility with return loads hauling tailings back to the active pit. The need to haul dry tailings, return dry material to the pit for reclamation, and limit the amount of water being purchased from the municipality has driven the design of a unique water reclamation system. BACKGROUND Location and Access Economic concentrations of ?black sand? or heavy mineral (minerals with specific gravity greater than 2.85) have been recognized and studied in marine placers from Coos Bay to the mouth of the Rogue River, a distance of approximately 75 miles along the southern Oregon coast (Hornor, 1918; Griggs, 1945)(Figure 1). ORC will begin mining existing reserves approximately 20 miles south of Coos Bay in a region known locally as Seven Devils. Ore will be trucked north to the processing site near Coos Bay via use of existing county and state roads, including U.S. 101. The available facilities at the processing site include highway, rail, municipal water and electricity, natural gas, and a deep water port. At the time of this writing, the rail line had been abandoned, but was being pursued by the International Port of Coos Bay. It is anticipated that this will be serviceable at some time in the future. History The southern Oregon marine placers have garnered the interests of miners since 1852, when present day beaches were exploited for gold. The beach deposits were small and irregular in nature and were easily washed away by the major storms the coast endures during the winter months (Hornor, 1918). [ ] In the 1920?s, deposits at the beach were followed upstream to their paleo-beach terrace origins (Pardee, 1934). These terrace placers were mined, but with little success, as the cost of mining and processing was greater than at the present day beach deposits. The greatest effort to understand and delineate the paleo-beach terrace placers came during World War II. As the need for a domestic source of steel hardening chromite was evident, the heavy mineral bearing placers of southwestern Oregon provided just that. The U.S. Geological Survey, under guidance from the Oregon Department of Geology and Mineral Industries, began exploration drilling of the paleo-beach terraces in 1940 (Griggs, 1945). This work was part of the investigation of strategic mineral deposits and would ultimately supply much needed chromite for the war efforts. The first mining efforts began in 1943 by the Humphreys Gold Corporation and the Krome Corporation (Griggs, 1945). Black sand

Jan 1, 2009

Microorganisms are finding more use in the mineral industry, with extensive research efforts being reported in 1991. Most of these research efforts were presented in two major meetings, the SME Annual Meeting in Denver (February, 1991) and the Engineering Foundation Conference about Mineral Bioprocessing in Santa Barbara (June 1991). In addition, several articles were published in the IMM Transactions, Minerals and Metallurgical Processing and Water, Air. and Solid Pollution Journal. The literature can be categorized as: • Review articles presenting an overview of the activities in the use of biotechnology in mineral processing. • Research efforts into genetic manipulation of microorganisms to perform a specified job. • Studies in bioleaching of metals from different types of ores. • Biotreatment of wastes from the mineral industry including acidic mine waters, uranium tailings, cyanide destruction, etc. • Investigations into the role of microorganisms in the energy materials, such as oil, coal, tar sands, oil shales, etc. Smith (Mineral Bioprocessing Conference) presented a review of research efforts as well as practical applications of biotechnology in the mineral industry. In another article, Smith et al. (Minerals Engineering) emphasized that extensive fundamentals and applied research work should be pursued to explore the fundamentals, potential and practicality of the various possible uses of microorganisms in mineral engineering.

Jan 1, 1992

By L. You

Theoretical and analytical analyses of three mitigative measures- plane fitting method, trenching, and tension cable led to the development of a total protection plan to eliminate or reduce damages to the residential structures subjected to surface movements caused by underground longwall mining. The protection plan was applied to twelve residential houses and two external garages. The success rate is overwhelming. This paper describes the methods employed for protection and results of those case studies.

Jan 1, 1986

By MUSTAFA ERKAYAOGLU, ENVER YILMAZ

Coal is still a part of energy generation worldwide and has a significant role in the sustainable development of countries. The amount of shallow coal deposits is getting scarce, making efficient underground mining operations crucial for both local and global economies. In underground mining operations, longwall mining is a commonly utilized method to extract deep coal deposits. One of the leading engineering goals in longwall mining is increasing the efficiency of the system by investigating the effects of operational factors on equipment. This paper investigates the shearer performance for a longwall top coal caving operation by discrete event simulation that includes modeling the double-drum shearer, belt conveyors, stage loader, and armored face conveyors (AFC) to evaluate system performance by considering the amount of daily coal production of the shearer. As a result, the most influential factor on mine production is determined and a data-based framework is developed. This study suggests a framework for data collection, data analysis, and the interpretation of the operational data to evaluate the primary production unit’s performance. The models developed for the face coal extraction operations in a longwall top coal caving (LTCC) mine have a bi-directional cutting system and can be implemented in other operations readily.

Jul 2, 2021

By James Wm. White

Computer-based mine management systems are being used in many surface mines to assign haul trucks, track equipment and manage information. Advances in digital communications allow these systems to be used in underground operations. Underground mine management systems help maximize production by providing gains in equipment and manpower use, drawpoint equalization in block caving operations, preventive maintenance and safety. Current systems use allocated or "locked" train and load-haul-dump (LHD) dispatching. Allocated dispatching rarely optimizes open pit product' on. But it offers an efficient mode of operation underground and where options are more limited. The primary objectives of underground mine management systems are to maximize production and mini¬mize contention time through allocated train, truck or LHD dispatching, traffic control, equipment monitoring and comprehensive reporting. The main components of an underground mine management system include: ? A central computer (personal computer or worksta¬tion) in a central control center. It sends instructions to train, truck or LHD drivers and allows dispatcher interaction. ? A field computer system (FCS). This consists of a touch-screen graphics console (GC) and mobile hub - on each train, truck or LHD to receive and display instructions from the central computer and accept driver input. ? A data radio network based on leaky feeder (data, voice, video) or microcell radios (data only) and advanced token-ring technology. This passes information between the central computer and the FCSs. ? Radio frequency (RF) tags mounted at boxes, weigh bridges, tips and rim tunnel main haulage ways to locate trains or LHDs (Luke, 1993). Such a management system must be in place before implementing computer-based dispatching (Vagenas, 1991) for production optimization.

Jan 1, 1997

By Aruna Mangalpady, Sandeep Kumar Jeripotula, Govinda Raj Mandela

Injuries due to work-related musculoskeletal disorders (WMSDs) are not uncommon in heavy industry like mining. Researchers acknowledged that occupational exposure to ergonomic risk factors is the chief causative factor in the development ofWMSDs. The aim of this study was to perform an ergonomic assessment of musculoskeletal disorders among surface mine workers in India. Standardized Nordic Questionnaire was used to collect subjective response from 500 workers. A stratified random sampling method according to surface mining work activity type was used to obtain the sample. Data was collected by means of a structured questionnaire, and the Statistical Package for Social Sciences (SPSS) was used to analyze data using descriptive and inferential statistical methods. A response rate of 85% was obtained out of 500 targeted groups. TheWMSDs prevalence for the 12-month period was estimated to be 44.23%. The mean and standard deviation of workers’ age were 41.31and 8.927, respectively. The study has shown that the operators of dumpers, dozers, and graders along with electricians were found to be the most susceptible to developWMSD problems. Among the most affected body parts, back disorder reported the highest. Further, it was found that working with static posture over the longer duration has a significant association with the lower back disorder (with p = 0.020) and bouncing and jarring has also significantly associated with the lower back disorder (with p = 0.023). Similarly, a significant association was found between repetitive work and neck pain (with p = 0.016). The study depicted a significant association between ergonomic hazards and WMSDs, like working with prolonged static posture, bouncing and jarring, and repetitive work.

Mar 13, 2020

By Hendrick A. D. Kirsten, A. Clayr Alexander

Stillwater Mining Company is currently developing a second underground palladium and platinum mine approximately 21 km (13 miles) west of their existing Nye operation in the Bear tooth Mountains of southern Montana. Portals for the two access tunnels required at the new site were excavated in limestone talus to accommodate4.6 m (15 feet) diameter tunnel boring machines. A review of the technical design, field conditions and construction of the portals is presented.

Jan 1, 2001

By B. Valentim

Policies for reducing NOx emissions have led power plants to restrict O2, resulting in high-carbon fly ash production. Therefore, some potentially useful fly ash, such as the economizer fly ash, is discarded without a thorough knowledge of its composition. In order to characterize this type of fly ash, samples were collected from the economizer of a Portuguese power plant burning two low-sulfur bituminous coals. Characterization was also performed on economizer fly ash subsamples after wet sieving, density and magnetic separation. Analysis included atomic absorption spectroscopy, loss-on-ignition, scanning electron microscopy/energy-dispersive X-ray spectroscopy, optical microscopy, and micro-Raman spectroscopy. Key words: Fly ash; Petrology; Petrography; Economizer fly ash

Jan 1, 2009

By G. Coombs, L. Meade, J. Welshimer

Industrial Minerals commodity profiles are continued from May's Annual Review issue. Diatomite G. Coombs, Manville Sales Corp. Growth in US diatomite production continued to lag in 1986. The US Bureau of Mines estimated that 580 kt (640,000 st) were produced last year. This is a 1%0 growth over 1985. The cumulative growth from the 1982 low point is 4.4%. Present production, though, is still only 90% of the high tonnage of 1979. The industry will see increased competitive activity with the start-ups of two new mines and production facilities in California and Oregon. US production has come primarily from Lompoc, CA, Bassalt, Clark Station, and Lovelock, NV, and Quincy, WA. New production, probably with capacities of 45 kt/a (50,000 stpy) each, have started near Burney, CA, and Vale, OR. Eagle Picher's new, full-line filter aid and filler plant at Celatom, Vale, OR, was dedicated in August. The plant uses diatomite from the Celatom mining district in Juntura, OR. Grefco's new filter aid and filler plant near Burney, CA, was ready in July. It produced flux calcined products through a single kiln and can handle both bag and bulk shipments. The operations are in Shata County with the plant and mine at the same site. Manville Specialties Group is moving its Filtration and Minerals Division headquarters and research staffs to Lompoc, CA. The move is intended to strengthen response and performance by locating research, marketing, and production close together. Diatomite is processed in three methods: natural, calcined, and flux calcined. The natural is dried to remove water and is particle size classified. Calcined or straight calcined products have been sintered to modify particle size or permeability. Flux calcination, or flux sintering, has a stronger influence on permeability and also benefits color. The unique structure of diatomite is used in a range of particle sizes from fine paint fillers, to coarser filter aids, to granular aggregates. Dimension stone L. Meade, Geomapping Associates Ltd. 1986 was another good year for dimension stone production. The trend toward using marble, granite, limestone, sandstone, and slate has created an increasing demand. According to US Bureau of Mines 1986 estimates, 1.1 Mt (1.2 million st) of dimension stone, with a value of $173 million, was produced by 200 companies. This is an increase from 1985, where 220 companies produced 1 Mt (1.12 million st) valued at $172 million. The increased production volume and decreased unit value is due to the competition from imports. The net import reliance in 1986 was 68% compared to 62% in 1985. The value of imports was $374 million in 1986 versus $295 million the year before. In an effort to maintain their market share, domestic finishers, particularly in the granite industry, continued to upgrade plants and machinery during 1986. In addition, offshore dollars have financed a number of fabricating facilities in North America that will finish imported rough stock. It is hoped that this increased domestic production capability will capitalize on a devalued US dollar. The trend has been for growth in stone usage and market. This trend is continuing with increased public awareness and desire for natural stone in buildings. The area of greatest market growth is expected to be in residential and interior decorative stone usage. Use of sophisticated, automated equipment has made the cost more affordable. Now lobbies, foyers, and specialty rooms are being clad in stone. Dolomite J. Welshimer, National Lime & Stone Co. About three-quarters of dolomite production is used as construction aggregates and 10% to 20% is sold or used as an industrial mineral. Total limestone and dolomite consumed for chemical and metallurgical purposes is about 136 Mt/a (150 million stpy). Sales of industrial dolomitic products were somewhat stronger in 1986 than levels recorded in the early 1980s. Some of the sales' strength, however, can be attributed to reductions in the number of active mining and processing operations. The industry will probably undergo further consolidation by the end of this decade. This will be due primarily to the continued softening in demand by the steel industry. Dolomitic limestone deposits being mined for raw materials for the steel, glass, and refractory in¬dustries are generally 54% calcium carbonate and 45% magnesium carbonate by weight. Impurities composed of silicon, aluminum, iron, sulfur, and phosphorous, represent less than 1%. The heaviest concentration of high purity, surface mineable dolomite in the US is in northwestern Ohio. Crushed and sized dolomitic limestone is a basic raw material for the iron and steel industry. It is also used as feed stone or lime kilns. Soft-burned lime is a popular raw material for BOF steel production. It is also used extensively in insulating glass fiber manufacturing. A related material, hydrated

Jan 6, 1987

By Gökhan Çevikbilen, Ümit Karadoğan, Sevde Korkut, Berrak Teymur

This study proposes a methodology for dewatering of mine waste using a multistage process, combining geotextile tubes and anionic polyacrylamide (PAM), which accelerates the recycling process of water for aggregate mine waste facilities. For this purpose, waste from a rock quarry located in Istanbul was investigated. Flocculation tests revealed that the use of anionic PAM at an optimum dosage reduced sedimentation time and decreased turbidity. The compatibility of geotextiles and mine waste conditioned with different dosages of the effective PAM was evaluated by rapid dewatering tests, considering the water content of the filter cake, amount of infiltrated solid content, and rate of filtration. Geotextile dewatering tests were also performed on PAM-free and conditioned suspensions. The dewatering process was optimized by the use of a geotextile tube in two stages: (i) on the unconditioned suspension and (ii) on recovered PAM-conditioned leachate. Directing PAM-free non-hazardous soil-based material obtained in stage i to alternative beneficial uses is suggested, to minimize the volume of waste. Furthermore, recycling of the effluent obtained at the second stage of the proposed method will ensure more efficient water reuse

Sep 29, 2022

By R. P. Gardner

Results of work on the development of a phenomenological model for the continuous flotation process using short-lived radioactive tracer techniques for the determination of model parameters is reported. A model that incorporates a flotation first-order rate constant and a residence time distribution based on the cross flow finite state (CFFS) model has been derived and investigated. The short-lived radioactive tracer techniques necessary to extract the model parameters have been developed as have the necessary nonlinear search methods. The conditions under which all the model parameters can be extracted from a single radiotracer experiment are detailed and illustrated. A microcomputer-based unique data logging system has been designed, assembled, and implemented for collecting the necessary transient radiotracer data. Results are reported for a continuous laboratory flotation system for the two systems mica ore and coal.

Jan 1, 1985

By Y. Luo

"It is generally known that spontaneous combustion potential is a function of coal rank, with low-rank coals having high susceptibility to self-ignition and high-rank coals having low potential. To establish this functional relationship and use it as an engineering tool to identify the propensity of coal to self-heat, both rank and spontaneous combustion potential should be quantified. ASTM D388 is normally used to classify coals by rank, but this classification system can only serve a qualitative analysis. To classify coals by their potential for spontaneous combustion, the self-heating temperature (SHT) method originally developed by the U.S. Bureau of Mines (USBM) was used by Litton and Page (1994) to correlate coal rank with spontaneous combustion potential. In that method, the SHTs of coal determined by an adiabatic experiment are linked with proximate analysis results through a proposed concept known as the “moist fuel ratio.” This ratio is a function of moisture, volatile matter and fixed carbon, all of which have widely different content percentages in different ranks of coal and have strong relationships with coal rank. However, the method is highly empirical, and there is large standard deviation between experimental data and calculated results. The equation correlating the coal quality parameters to determine SHT should be improved with more experimental data.This paper reports on the development of a new system for predicting the spontaneous combustion potential of U.S. coals, based on coal composition data from the U.S. Geological Survey’s coal quality database. First, the user is provided with a quantified classification of coal rank. Second, based on experimental SHT data covering a wide range of ranks from lignite to low-volatile bituminous coal, the original USBM correlation for predicting SHT is improved for the respective rank of coal. The relationship between the rank and SHT of U.S. coals was developed and plotted. The plot diagram can be used for a quick estimate of the SHT of a U.S. coal and as a cost-effective tool for the initial risk assessment of a new mine development."

Jan 1, 2015

Two new inorganic-organic hybrid polymers, Al(OH)3-polyacrylamide (Al(OH)3-PAM) and Mg(OH)2-polyacrylamide (Mg(OH)2-PAM) were synthesized and successfully applied for the treatment of oil sand tailings. The results indicate that both Mg(OH)2-PAM and Al(OH)3-PAM were unaffected by the change in pH, and could be applied to oil sand tailings with varying sand-to-fine ratio (SFR). The optimum dosages for the Mg(OH)2-PAM and Al(OH)3-PAM were about 330 g/ton and 650 g/ton, respectively for SFR 3.75. The flocculated oil sand tailings dewater quickly producing 66-68% solids. The flocculated tailings produced similar filtration rate before and after shear. Mg(OH)2-PAM treated oil sand tailings produced twice the filtration rates (220 ml/min) compared with Al(OH)3-PAM. This study clearly indicates that Mg(OH)2-PAM and Al(OH)3-PAM is a viable solution while decreasing the mass-production of tailings and increasing the rate of water-recycle.

Jan 1, 2012

By Steve Kral

Competition from foreign coal producers could displace as much as 9 Mt/a (10 million stpy) of US coal bound for power plants located near waterways. But, according to a Maryland-based coal consultant, it could be worse. Theoretically, about 52 Mt (57 million st) of domestic coal could be vulnerable to imports by 1990, said Forrest Hill, of Hill & Associates of Annapolis. Hill was speaking to about 150 coal industry executives and experts at the third annual Coal Marketing Strategies Conference in November. Most were at the Denver, CO conference to pick up tips on how to sell coal in an oversupplied market. Imports threaten domestic markets Of the 200 utilities studied by Hill and his staff, 119 are situated near major waterways, he said. However, most of those waterways are not equipped to handle coal from the shipping lanes. Good news for US coal producers. But don't breathe too easily. Foreign coal still poses a major threat to domestic markets, Hill continued. The strength of the US dollar is an obvious factor. But easy access to US utilities located on waterways combined with low rates for ocean vessels give foreign producers another edge. And foreign mines are typically low cost producers. For example, Hill said Colombia's huge Cerrejon mine can deliver coal to an Illinois power plant for $47.87/t ($43.39 per st). That compares to $52.85/t ($47.95 per st) from a Kentucky coal mine. Also, Colombian coal producers can generate a cash flow even if the coal sells for $27.50/t ($25 per st). The main competition US producers face from abroad, as Hill sees it, comes from Australia, Canada, Colombia, Poland, South Africa, and, perhaps, from Venezuela. Domestic producers, however, do have some things going for them. Most US coal buyers, Hill said, "are not wild about the idea of buying foreign coal." A 10% price advantage or pressure from public utility commissions would be needed to force some of them to buy foreign coal, he said. Some of the utilities contacted said they would not commit to more than one-third of their stockpiles to a foreign source. Another advantage for US producers is that they have room in their long-term contracts to cut prices and still maintain a profit, Hill said. Railroads, too, have high profit margins written into their rate structures. They are also aware of the import threat. Therefore, they may reduce their rates accordingly to keep their markets. Marketing's role The energy price shocks of 1972 and 1976 caused major adjustments in world economics. Coal was no exception. High oil prices caused many utilities to look at less expensive coal. As the market improved, coal prices began to respond, said R. Gale Daniel, of Anaconda Minerals Co. But clean air legislation and the strengthening dollar caused havoc in the coal markets, he said. The price of oil crashed, taking with it predictions of record coal use. The result is an oversupply of coal that has led to price cutting. Now, coal marketing must be recognized in its "true leadership role," Daniel said. Marketing people must know when to use spot sales to balance production objectives and maintain cost-effective-

Jan 1, 1986